Global Biofuel Alliance: India’s Tryst With Sustainable Development Goals
Biofuel technology encompasses a diverse array of methods for generating fuels from organic sources such as crops and biomass. The process begins with the selection of appropriate raw materials, ranging from corn to vegetable oils. There are two primary conversion techniques: biochemical, which involves fermentation, and thermochemical, utilising processes like pyrolysis. Biodiesel...
Biofuel technology encompasses a diverse array of methods for generating fuels from organic sources such as crops and biomass. The process begins with the selection of appropriate raw materials, ranging from corn to vegetable oils. There are two primary conversion techniques: biochemical, which involves fermentation, and thermochemical, utilising processes like pyrolysis. Biodiesel is crafted from vegetable oils through transesterification, while algal biofuels necessitate the cultivation and processing of algae. Biogas is the product of organic material digestion. Second-generation biofuels incorporate advanced methods like enzymatic hydrolysis and gasification. Blending biofuels with traditional fossil fuels is commonplace, and sustainability and research play vital roles in the ongoing development of biofuel technology. Biofuel technology is an evolving field, and there are ongoing efforts across the globe which aim to make biofuels more sustainable, cost-effective, and widely adopted as part of the transition to more environmentally friendly energy sources above all helping in reducing the Green House Gas (“GHG”) emissions. This field remains dynamic and holds the potential to contribute significantly to achieving various Sustainable Development Goals (“SDG”). Biofuels can reduce poverty, decrease dependence on fossil fuels, lower toxic emissions, promote a circular economy by utilising agricultural residues and municipal waste, aid in land restoration, create rural job opportunities, foster industrial development, and generate specialised employment, all aligning with SDGs 1, 2, 3, 7, 8, 9, 13, and more.
However, biofuels also present challenges such as land use changes impacting food security and causing deforestation, resource-intensive production, the need for technical adaptations to engines and infrastructure, lower energy density compared to fossil fuels, and the potential for GHG emissions resulting from land use changes. Effective feedstock selection, sustainable practices, and well-considered policies are crucial to harness the benefits of biofuels while mitigating their drawbacks.
Global Biofuel Alliance (GBA)
On September 9, 2023 India launched the Global Biofuel Alliance (GBA) as the G20 Chair, on the fringes of the G20 Summit in New Delhi, along with Singapore, Bangladesh, Italy, the United States, Brazil, Argentina, Mauritius, and the United Arab Emirates. With the help of a broad range of stakeholders, this Alliance hopes to accelerate the adoption of biofuels worldwide by acting as a catalyst and promoting technological developments, increasing the use of sustainable biofuels, serving as a hub for experts and a common store of knowledge helping developing strong standards and certification. This action is also in furtherance of the declaration adopted in COP23 Climate Change Conference in Bonn held in 2017 to develop sustainable biofuels targets and scale up low carbon bioeconomy.
- National Framework on Biofuels
The National Biofuel Policy 2009: The National Policy on Biofuels, 2009 in India aimed to alleviate reliance on fossil fuels through the promotion of biofuel production and utilisation. It categorised biofuels, such as ethanol and biodiesel, setting specific blending targets. The policy encouraged sustainable practices, including the cultivation of non-food feedstocks. With a focus on research and development, it sought to explore advanced biofuels. Addressing environmental and social concerns, the framework aimed at ensuring sustainable production. Regulatory measures were implemented to ensure quality control and compatibility. This policy represented a strategic initiative to cultivate a cleaner and more sustainable energy ecosystem in India.
The National Policy on Biofuels 2018: This policy aimed to bolster India's biofuel industry, categorising biofuels into first-generation (1G) and advanced types. It established blending targets, encouraging ethanol-petrol and biodiesel-diesel blends. The policy establishes clear goals for blending biofuels with petrol and diesel. It charts a path to reach 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030. It offers incentives to biofuel producers, including financial aid, tax advantages, and subsidies to stimulate the biofuel sector's growth. Furthermore, it encourages the conversion of agricultural and municipal waste into biofuels, contributing to both waste management and energy generation. The policy emphasises the significance of sustainable biofuel production, with a special emphasis on minimising its impact on food security, land use, and biodiversity.
The National Biofuel Policy 2018 (Amended in 2022): The amended policy allows more feedstocks for increased biofuel production and advances the target of 20 percent ethanol blending in petrol to 2025-2026 from 2030. These amendments align with India's commitment to clean energy, fostering growth in the biofuels market and supporting the nation's transition towards sustainable alternatives. This amendment highlighted the country's resolve to align with global sustainability objectives and nurture a thriving biofuel industry for an environmentally conscious and sustainable future.
Position of Indian Companies on Biofuel
In line with the nation's goal of lowering its carbon footprint and promoting sustainable energy sources, Indian businesses have been looking into opportunities in the biofuel industry. Businesses in the public and commercial sectors have entered the biofuel production space, with a primary concentration on bioethanol and biodiesel. The production of bioethanol, which is mostly made from sugarcane molasses, has increased dramatically in India. Companies that produce sugar have led the charge in this endeavour. Companies like Shree Renuka Sugars and Praj Industries Limited, for example, have been actively interested in setting up bioethanol facilities. Furthermore, a term sheet to expand biofuel production capacity in India has been inked between Praj Industries Limited and the Indian Oil Corporation(IOC). There have been significant advancements in the manufacturing of biodiesel in India as well. Godrej Agrovet and Ruchi Soya Industries Limited are two companies that have shown interest in producing biodiesel from non-edible oilseeds. Furthermore, businesses producing biodiesel have benefited from government efforts like the National Mission on Biodiesel and Biodiesel Purchase Policy.
- Challenges and Opportunities
The biofuel industry in India encounters various challenges that hinder its expansion and widespread acceptance. A noteworthy hurdle involves the competition for arableland between biofuel crops and food crops, giving rise to apprehensions regarding food security. Achieving a delicate equilibrium between cultivating feedstocks for biofuels and ensuring ample food production stands as a multifaceted challenge. Furthermore, the progression of technological innovations in second and third-generation biofuels presents difficulties, demanding substantial investments in research and development to surmount technical obstacles and render these advanced biofuels economically feasible on a broad scale. The sector also grapples with inconsistentpolicies and regulatory frameworks, acting as additional barriers to its advancement. Overcoming these challenges necessitates the implementation of clear, steadfast, and supportive policies to attract investments and facilitate the growth of the industry.
In spite of the challenges faced, the biofuel sector in India unveils noteworthy prospects for sustainable energyproduction and economic development. Biofuels emerge as a means to curtail greenhouse gas emissions, contributing significantly to efforts in climate change mitigation. Moreover, the adoption of biofuels holds the potential to bolster India's energy security by diminishing reliance on imported fossil fuels. The industry becomes an avenue for rural development, acting as an additional income source for farmers engaged in the cultivation of biofuel feedstocks. With well-crafted policies and strategic investments, biofuels stand poised to diversify the energy landscape, offering a renewable and sustainable substitute for conventional fossil fuels. The technological innovation within the biofuel sector not only paves the way for economic growth but also presents opportunities for job creation, positioning India as a leader in the realm of clean energy solutions. Collaborations and partnerships on an international scale can further expedite progress in biofuel technologies, establishing India as a significant global player in the bioenergy arena.
- International Approach
Brazil
Brazil has played a pioneering role in global biofuels production and utilisation by combining mandates, financial incentives, and sustainability regulations to promote secure and cost-effective biofuels. Their ethanol blending mandates date back to 1975 with the Proálcool program and have gradually increased to 27% on a volume basis. The widespread adoption of flex-fuel vehicles, constituting almost 90% of Brazil's light-duty vehicle fleet, empowers consumers to choose economically advantageous ethanol blends. In 2022, Brazil achieved a substantial ethanol blending rate of 34% based on energy. As the world's second-largest biofuels producer, biofuels contributed 22% to Brazil's transport energy in 2022. The nation has integrated biofuels into its long-term energy strategy, utilising mandates, financial incentives, vehicle specifications, and sustainability criteria to stimulate both production and demand.
In Brazil, biodiesel blending targets started at as meagre as 2% in 2005, which rose progressively to 12% by 2023, with a goal of reaching 15% by 2026. However, Brazil adjusted its 2023 target to 12% due to high biodiesel and diesel prices. The RenovaBio program, which also covers ethanol and biodiesel, sets targets for reducing lifecycle GHG emissions in the transportation sector. The policy focuses on enhancing biofuel plant performance, GHG reduction, and long-term incentives for liquid biofuels. Brazil's Fuel of theFuture Program, launched in 2021, aims to support sustainable and low-carbon fuels, highlighting research priorities like sustainable aviation fuel, cellulosic ethanol, and Carbon Capture Utilisation and Storage (“CCUS”). Expanding feedstock sources is critical for any biofuel programme’s growth, with estimates of a 55% increase in ethanol and an 85% rise in biodiesel production by 2030, achieved through improved crop yields, intercropping, protection andreforestation efforts in the amazon basin area, marginal land utilisation, and waste and residue utilisation. Additionally, Brazil has significant agricultural residues which can be channelised towards the production of biofuels, with four cellulosic ethanol facilities under construction for commercial-scale production. Nonetheless, Brazil faces challenges tied to rising production costs and concerns over land use protection within its biofuels sector in recent times.
USA
The inception of national ethanol and biodiesel blending can be traced back to the establishment of the Renewable FuelStandard (“RFS”) in 2005 through the Energy Policy Act. Subsequently, it was further modified and extended under the Energy Independenceand Security Act, 2007, which mandates the use of biofuels in transportation fuels, with a focus on corn-based ethanol and advanced biofuels. The RFS has driven significant growth in biofuel production, but it also faces criticism due to concerns about its environmental impact and food-versus-fuel competition. The US is increasingly exploring advancedbiofuels, such as cellulosic ethanol, as a means to reduce emissions and promote sustainability. In 2022, the US Government brought the Inflation Reduction Act (“IRA”) which introduced a range of measures including tax credits, investment incentives, and infrastructure grants for biofuels, whose validity extends until 2032. Additionally, various state-level policies, like California'slow-carbon fuel standard, offer supplementary incentives for biofuels, particularly those with lower greenhouse gas emissions. The US Environmental Protection Agency (“EPA”) is reportedly planning to raise biofuel blending mandates in 2023 beyond the initially proposed levels. This adjustment aims to boost the use of biofuels, particularly ethanol and biodiesel, in the transportation sector, contributing to reduced greenhouse gas emissions and enhanced energy security. The move is seen as a response to demands from the biofuels industry and aligning with the Biden administration's commitment to addressing climate change. The EPA's revised mandates are expected to have implications for the renewable fuels industry and the overall energy landscape in the US.
The Way Forward
The GBA contributes significantly by sharing best practices, offering technical support, and enhancing capacity which play a vital role in global initiatives that aim to foster sustainable biofuel growth, a critical step in reducing carbon emissions from transportation and heating while ensuring reliable and cost-effective energy supplies. Biofuels, derived from photosynthesis and CO2 fixation, are renewable and possess the potential to mitigate GHG emissions. Achieving carbon neutrality with biofuels necessitates high plant yields and low emissions. The 'food versus fuel' debate arose due to concerns over the impact offirst-generation ethanol made from cereals on cereal prices and food production. While Brazil, India, and the US share lessons in biofuel production, the common challenge is feedstock availability. To address this, strategies such as enhancing land productivity, improving waste and residue collection, and adopting versatile technologies with an ability to process different feedstocks such as cellulosic ethanol can be put to use. CCUS can furtherreduce biofuel carbon intensity and use of alternatives such as municipal solid waste should be explored and expanded in biofuel production as the government of State of Punjab is exploring this possibility. Collaborations, including the International Energy Agency (“IEA”), are vital for technology deployment, GHG reduction, R&D, and knowledge exchange. The crop residue or stubble instead of being burnt on farmlands, can be used in making biofuel as the re-operationalization of Jalkheri power plant by the PSPCL can prove a boon to the environment of the region where the stubble is produced and for the economy in general. Such measures can be taken on a larger scale so as to preserve the environment and benefit the farmers. NTPC also started a similar initiative back in 2018 where the pellets made will be used by the power stations to generate electricity. Multilateral development banks, development financial institutions, and partnerships with various stakeholders are key to driving such transformative global changes and will go a long way towards the realisation of set targets and goals.
On a concluding note, this step by India comes at a moment when the EU proposes to implement the Carbon Border Adjustment Mechanism to realise and redeem its pledge to act on climate change issues. India, by representing the Voice of the Global South, again has proved to the world that it can be a pioneer in such initiatives and all eyes are set on India as it is the second tryst after International Solar Alliance, in a decade towards the realisation of United Nations Framework Convention on Climate Change (UNFCCC) and IEA's Net Zero Emissions by 2050 scenario, reinforcing its commitment to climate action and pioneering role in global sustainability efforts.
Devansh Malhotra is an Advocate at Punjab & Haryana High Court, Chandigarh. Ravi Sharma is an Advocate, Delhi High Court, New Delhi. Views are personal.